Tax integration: a solution to capital formation problems

Journal Article · Sat Jan 01 04:00:00 EST 1977 · Electr. Perspect.; (United States)

OSTI ID:7217078

Simon, W E

A non-partisan tax integration proposal by former Treasury Secretary Simon is aimed at lowering unemployment, raising living standards, and increasing energy self-sufficiency. Capital investment is felt to be a pivotal factor in the effort to improve productivity efficiency. Short-term changes can help to raise capital through a combination of tax cuts and spending-restraint policies, but a tax integration plan is needed to develop capital investment incentives and effect long-term savings. Integrated taxation would eliminate the double taxation on corporations and individuals and would equalize the tax treatment of debt interest and dividend payments to remove the bias that favors debt over equity. Taxes designed to increase productivity by increasing consumption are felt to be valid only when stimulation is needed to overcome a period of recession. Critics of the plan charge that it is weighted toward big business and high incomes; it is too costly; tax savings will go for dividends rather than corporate expansion; and it will be simpler to lower corporate income tax. Mr. Simon claims, in response, that all savers will benefit; real future income and future tax revenues will be higher; investment incentives will develop and attract high-dividend paying investors; and the debt-equity ratio needs to be equalized in addition to lowering corporate taxes. (DCK)

• OSTI ID: 7217078
• Journal Information: Electr. Perspect.; (United States), Journal Name: Electr. Perspect.; (United States) Vol. 1; ISSN ELPED
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200* -- Energy Planning & Policy-- Economics & Sociology
293000 -- Energy Planning & Policy-- Policy
Legislation
& Regulation
CAPITAL
ECONOMIC DEVELOPMENT
ECONOMIC IMPACT
ECONOMIC POLICY
ECONOMICS
FINANCIAL INCENTIVES
GOVERNMENT POLICIES
INVESTMENT
LEGISLATION
NORTH AMERICA
OCCUPATIONS
RECOMMENDATIONS
RESOURCES
SOCIAL IMPACT
SOCIO-ECONOMIC FACTORS
TAXES
USA
WORK